The latest milk production figures from across Europe show that milk supply in Germany and France, the two largest milk producing countries in Europe, went through a decline in the months leading up to Christmas.

The latest figures from Eurostat show milk production in Germany for the month of November stood at just over 2.4bn litres, which is down 0.5% on the same month last year. This follows a similar drop off in milk supply for the month of October, meaning German milk flows are firmly in retreat for the last quarter of 2020.

German milk supply for the full year of 2020 is likely to finish at just under 31.5bn litres, which would be in line with the previous year. Germany is by far the largest milk producing country in Europe and milk supply trends in the country have a major bearing on dairy market sentiment.

In neighbouring France, milk production for the month of November stood at just under 1.9bn litres, which is down slightly (-0.4%) on the same month last year. Similar to Germany, French milk production has been weaker in the final months of 2020.

French milk supply is likely to finish 2020 in or around 23.8bn litres, which would be slightly ahead of 2019 milk supply volumes.